Last week the S&P 500 closed higher just marginally but the intra-week volatility was meaningful.
Thursday’s rally found its match just a day later, which forced equities to close at the lows for the day.
The 15 minute chart of the S&P 500 shows that on Friday the index retraced back to its breakout point from just the day prior. I view the 1410 – 1412 are as last support before we slide back to the recent lows near 1404 and most likely quite a bit lower.
Here is the more important chart however: From the last swing high on October 18th to that swing’s lows on October 26th the index retraced exactly 50% at the open last Friday. Should that resistance level hold and the 1410 area fold then I see 1390 and likely 1370 as the next downside targets. Those two levels are the 23.8% and 50% Fibonacci extension levels of the most recent swing.